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03/07/24
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Shares In Europe Higher on Firmer Fed Rate Cut Bets
On Wednesday, European shares were higher as new U.S. economic data and dovish comments by Federal Reserve Chair Jerome Powell increased rate cut expectations, while investors waited for the second round of France’s vote and the UK’s national elections.
The STOXX 600 pan-European index closed 0.7% higher and rose for the second session out of the last 7.
On Wednesday, Wall Street rose after business activity and labor market data in the U.S. indicated softening economic conditions, firming hopes of a rate cut in September.
The data came after remarks by Powell on Tuesday that recent data represented progress in the fight against inflation.
Technology stocks rose 1.6%, underpinned by BE Semiconductor Industries and Dutch semiconductor equipment makers ASML Holding, jumping 7.3% and 2%, respectively.
A market analyst at Swissquote, Ipek Ozkardeskaya, said there would be some correction to the downside in the markets at some point. When this begins for semiconductors, other sectors should give support and limit the losses on the S&P 500.
The top sectoral gainers were miners which advanced 2.2%, after copper prices rose on a softer dollar amid increased hopes of rate cuts in the U.S. and indications of firmer demand from China, the world’s top consumer.
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